The Mabilo Property hosts mineralization of copper-gold-magnetite skarn type. Skarn describes a rock dominated by calc-silicate or calcium- magnesium silicate minerals formed by metasomatic replacement of carbonate-bearing rocks rich in calcium and magnesium. Skarn forms as a result of interaction of carbonate- bearing host rock with hydrothermal fluids derived from an igneous intrusion.

Skarn copper-gold-magnetite is considered to be the primary target at the Mabilo Property. While the occurrence of copper-gold-magnetite skarn may suggest some potential for porphyry coppergold mineralization, no indication of this type of mineralization has been encountered and no porphyritic intrusions have been identified. There may also be potential for epithermal gold mineralization, but this is also a secondary target; pyrite-quartz overprint of the known skarn is of epithermal style, but is not known to be gold-mineralized.

The geology of the Philippines comprises a complex sequence of juxtaposed and superimposed island arcs formed by multiple episodes of subduction, arc-magmatism, ocean basin closure, collision, ophiolite accretion and lateral translation of terranes through regional strike slip faulting, notably the 1,500 km long sinistral strike slip Philippine Fault System ('PFS').

Gold mineralization in the Philippines occurs predominantly within deposits of porphyry copper-gold and epithermal gold (-silver) style. Late Miocene-Pliocene collision between the Philippine mobile belt and continental crustal blocks from Eurasia, which led to stalling of eastward subduction and initiation of westward subduction, immediately preceded the major Pliocene mineralization event.

In the northeast of the Paracale district, a belt of obducted Cretaceous ultramafic rocks (serpentinite and talc schist) and Palaeogene andesitic volcanic, volcaniclastic, marine siliciclastic and carbonate rocks represents basement to the Pacific Cordillera arc (Garwin et al., 2005; Pena, 2008). The Paracale Granodiorite (trondhjemite) intrudes the Cretaceous ultramafic basement and has been interpreted either as part of the allochthonous block of Cretaceous ophiolite or as a Miocene intrusion emplaced into the accreted ultramafic basement.

The Paracale Mining District is one of the most significant historical gold producing regions in the Philippines with gold production dating back to the 12th century, predominantly from narrow quartzsulphide veins. Total gold production including alluvial gold is estimated to have been 5 million ounces. Gold was mostly mined from NNE-trending epithermal veins within and cross-cutting the margins of the Paracale Granodiorite (Figure 7.2) – mineralization is interpreted to be related to later Pliocene magmatic activity.

The Tumbaga Formation hosts a number of magnetite skarns and base metal occurrences defining the base metal and iron belt. The Larap mine produced approximately 20 Mt of iron ore from seven different magnetite bodies between 1918 and 1975. In 1971 the reserves were said to be approximately 49 Mt at 25.7% Fe (Sajona, 2013; this is a historic mineral resource estimate and is not classified under JORC reporting criteria). The mineralization is anomalous in copper, gold, molybdenum, cobalt and uranium although these have not been produced as by-products. The causative intrusion for the Larap skarn has not been identified but is interpreted to underlie the deposit.

There are other smaller iron skarn prospects and occurrences throughout the belt associated with variable but generally low grades of copper, gold, silver, molybdenum, arsenic, bismuth, tungsten, cobalt and uranium. Some are associated with diorite bodies and andesitic to dacitic porphyries. Skarn mineralization at Paracale is reported to be of Early Miocene age (20.5 Ma) by Garwin et al (2005).

Mabilo lies about 20 km southeast of Larap in a separate northwest-trending belt of Tumbaga Formation and appears to be of the same style and association, although with higher grades of copper and gold.

Low-grade porphyry copper mineralization is also reported in the same Tumbaga Formation belt. The best documented porphyry copper deposit is Matanlang which has a reported resource of 65 Mt at 0.35% Cu, 0.4 g/t Au and 0.05% Mo (UNDP, 1992; this is a historic mineral resource estimate and is not classified under CIM reporting criteria).

Quaternary lahar and tuff deposits of the Labo Volcanics cover the southern and eastern two-thirds of the Mabilo exploration license, thickening southward from Venida. In the deposit area, the Labo Volcanics vary from about 30 m to 50 m in thickness, reflecting both palaeotopography and stratigraphic thickness. As a result of the poor exposure, younger volcanic cover and limited drilling, the geology of the older rocks in the license area is not well constrained.

Beneath the Labo volcanic unconformity, Tumbaga Formation sediments and volcanic sediments are intruded by a quartz diorite stock. The sediments include variably calcareous siltstones, volcanogenic sandstone and wacke, clean limestone, and silty limestone. The quartz diorite intrusion that has been drilled under cover at Mabilo is probably equivalent to the diorite intrusion mapped immediately north of the license which is assigned to the late Miocene Tamisan Diorite uite. The sedimentary lithologies are hornfelsed and metasomatically altered in the contact zone of the intrusion. The extensive hornfels and the irregular extent of the diorite are suggestive of a roof zone of a mid-level intrusion.

Open pit mining is the method selected for the Mabilo mining operation. Pit optimization has demonstrated that application of this method results in favorable project economics. The method deploys conventional drilling, blasting, loading and hauling techniques to excavate and transport ore and waste materials.

Mining activities also include clearing of land, stripping and storage of topsoil, ore rehandle, pit dewatering, dust suppression and dump rehabilitation. All activities will be performed by mining contractors except for grade control, mine planning and mine management being undertaken by the mine owners.

Ultimate Pit Design
Some features of note:
• The deepest part of the pit is at -100 m RL, with a pit ramp exit at 115 m RL, making the pit 215 m deep.
• Ramps are located in the eastern wall at a gradient of 10%, utilizing switchbacks, except in the final single-lane sections.
• Single lane ramps with a maximum gradient of 12.5% were used to access the deepest parts of the orebody with minimal waste mining. The northern single lane ramp runs from 55 m RL to -0 m RL, or 55 meters depth, and the southern single lane ramps runs from - 30 m RL to -95 m RL, or 65 meters depth. These areas are located in fresh rock, below the Tumbaga Weathered geotechnical contact.
• Goodbye cuts are mined at 10 m width from the last level with bench access.
• Switchbacks have been located in line with catchment berms to minimize the width impact to pit walls.

The treatment plant design incorporates the following unit process operations:

- Single stage open circuit primary crushing to produce a crushed product size of 80% passing (P80) 120 mm.

- A crushed ore surge bin with a nominal capacity of 120 t. Surge bin overflow will be conveyed to a dead stockpile of 20,000 tonnes. Ore from the dead stockpile will be reclaimed by front end loader (FEL) to feed the mill during periods when the crushing circuit is off-line.

- Grinding of ore in a SAG mill circuit in closed circuit with hydrocyclones to produce a P80 grind size of 90 µm.

- Bulk sulphide flotation to recover copper sulphides and gold bearing pyrite.

- Two-stage cleaner flotation to recover copper sulphides into a copper concentrate and pyrite into a product for sale.

- Concentrate thickening and pressure filtration to produce a copper concentrate filter cake.

- Pyrite thickening and either pressure filtration to produce a pyrite concentrate filter cake or discharge direct to tailings.

- Magnetic separation of the bulk sulphide tails to recover magnetite into concentrate.

- Concentrate thickening and pressure filtration to produce a magnetite concentrate filter cake.

- Combined tailings pumping to the tailings storage facility (TSF).